Gold markets pulled back a bit during the trading session on Monday, in what would have been relatively thin trading. We did find support at the $1280 level, which is a good sign as it is so important.

The US dollar continues to levitate a bit against the Japanese yen during the day on Monday, but keep in mind that the Martin Luther King holiday of course would have a lot of influence on what the Americans were doing as they were mainly away from their desks during the day.

The British pound stabilized a bit during the trading session on Monday, as the 1.2850 level seems to be offering support yet again. Ultimately, I think that this market is still gyrating to the “thought of the moment” when it comes to Brexit.

The British pound pulled back initially during the trading session on Monday but found enough support underneath to turn around and it stabilized a bit. We are right at the 50 day EMA, and more importantly the ¥141 level. This is an area that has been important more than once.

The Euro rallied a bit during the trading session on Monday, and then gave up all of those gains to reach towards the 1.1350 level. This is a negative turn of events, but we are still in the “rounded bottom” that I had pointed out previously, it’s a bit early to start shorting. Beyond that, I see several points of support underneath.

The Australian dollar initially tried to rally during the trading session on Monday but gave back the gains and rolled over towards the 0.7150 level. At this point, it certainly looks as if we are running out of momentum to the upside, so I think it’s only a matter of time before we fall a bit further.

Stronger than expected Chinese retail Sales and Industrial production also buoyed global yields weighing on gold prices. Momentum has recently turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occur as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line.

The gold prices have pulled back in the Friday’s session, reaching down to the $1280 level which is offering a bit of support. The market will continue to be bullish in the long term as the Federal Reserve is likely to go easy on rate hikes. The silver market has entered a bearish territory of the trend by breaking below the supportive $15.50 level.

If the market breaks below the 1.1350 level, then it could break down towards the 1.12 level. The AUD witnessed a massive resistance as it tried to break higher but has pulled back from there. It has been a bit bullish in the market and if the market breaks above the 110 level, then the market could witness a lot of upside pressure.

Investing.com - Cryptocurrencies traded lower on Monday as the Organization for Economic Cooperation and Development (OECD) called for global coordination on the regulation of initial coin offerings (ICO).

Investing.com - The pound slid on Monday as British Prime Minister Theresa May prepared to outline her Plan B for Brexit, designed to break the deadlock in parliament by setting out proposals that are expected to focus on winning more concessions from the European Union.

This week, the price action in gold will continue to be driven by the movement in U.S. Treasury yields and appetite for risk. Rising yields and stock prices should dampen demand for gold. Technically, traders may try to pressure sell stops under the recent low at $1278.10. If successful, they could trigger a break into $1268.50. All bets will off for a steep break if buyers can recapture $1289.20.

The tone changed from short-term bullish to short-term bearish last week when U.S. Treasury yields started to rise. This helped make the U.S. Dollar a more attractive investment. Yields are being boosted by increased demand for risky assets tied to the optimism over the positive developments in the trade talks between the United States and China.